Indigo Paints Ltd

Indigo Paints Ltd: Trading Window closed from October 1, 2026 till 48 hours after the announcement of unaudited financial results of the Company for the quarter ended September 30, 2026

AGM Details

• AGM on 12 Sep 2026 via VC/OAVM; 11:00 IST start; record date 04-09-2026; attendees: 3 promoters, 56 public.

Resolutions and outcomes

• Item 1: Adoption of standalone and consolidated financial statements; passed.
• Item 2: Final dividend of Rs 5 per share; passed.
• Item 3: Appointment of Narayanankutty Kottiedath Venugopal as Executive Director; retirement by rotation; passed.
• Item 4: Remuneration payable to Harsha Deshpande & Associates (Cost Accountants); passed.

AGM details

• AGM held Sept 12, 2026 at 11:00 IST via video conferencing/AVM.

Key resolutions

• Adoption of standalone and consolidated financial statements (Ordinary).
• Final dividend of Rs 5 per equity share (Ordinary) declared.
• Appointment of Narayanankutty Kottiedath Venugopal as Executive Director, retires by rotation.
• Ratification of remuneration payable to Cost Auditors for FY 2026-27.

Voting status

• E-voting results to be disclosed to stock exchanges and on company's website.

Financial Performance

• Standalone revenue INR350 crores, up 18.7% YoY from INR295 crores.
• Standalone gross margin 45.3%.
• Standalone EBITDA INR61.9 crores; margin 17.7%.
• Standalone PAT INR42.4 crores; margin 11.8%.
• Advertising & promotion 4.3% of revenue in Q1 vs 6.8% YoY.
• Consolidated revenue INR369.7 crores; up 19.7% YoY.
• Consolidated EBITDA INR62 crores; margin 16.8%.
• Consolidated PAT INR41.7 crores; margin 11%.

Product & Distribution Update

• All categories grew; primers/distempers value up ~30%, volume >18%.
• Apple Chemie revenue INR19.7 crores; up >40% YoY; profitability compressed.
• Indigo to acquire 11% more Apple Chemie; aggregate holding to 62%; promoters 38%.
• Water-based plant at Jodhpur: 90,000 kiloliters/year; trial production in H2 Aug.
• Solvent-based Jodhpur plant already in production; ramping up.
• Active dealers ~19,400; active tinting machines ~12,400.
• Solar capacity installed: 350 kW; plan 1,200 kW more at Jodhpur.

Capacity, Capex & ESG

• Water-based Jodhpur capacity to support Northern/Eastern/Central demand; lead-time and freight benefits.
• Principal capex cycle behind; no significant capex in next 3 years.
• ESG/CSR: Indigo Seva Utsav painted 240 government schools; painter health program >30,000 families.
• Skill Up trained 1,250 painting contractors; Educare program aided 420 underprivileged girls.

Outlook & Guidance

• Plan to be more aggressive in Q2 on trade and influencer spend.
• Raw-material costs eased but elevated and volatile; monitoring continues.
• FY27 starts in a distinctively stronger position; capacity in place; no major capex ahead.
• Aim for a substantial top-line gap vs industry; fixed 2x guidance not stated.
• Q2 margins likely uncertain; six-month period viewed for comparison.

Q&A Highlights

• Gap vs leader to widen; pursue higher top-line growth with more spend in Q2.
• Kerala floods not significant; IPL advertising paused due to Iran-war disruption; will resume.
• Jodhpur capacity ramp delayed by civil contractor; trial production in ~10 days; festive ramp possible.
• Differentiated products share ~29–30%; target to hold, 35–40% unlikely.
• Competitive intensity: JSW Paints and AkzoNobel exist; no merger; Birla Opus impact subsided.
• No new differentiated launches; existing differentiated share near 29–30% with steady growth.

Key Metrics & Milestones

• Apple Chemie aggregate holding to 62% on 11% additional stake purchase.
• Water-based Jodhpur capacity 90,000 kL/year; trial production in Aug; ramp-up by festive season.
• Solar capacity: 350 kW; 1,200 kW planned addition at Jodhpur.

Overview

• Standalone BRSR for FY2025-26 covering Indigo Paints' paint manufacturing.
• 6 plants and 61 locations nationwide across 36 states/UTs.
• Exports account for 0.18% of turnover; turnover is entirely from paints.
• Reporting boundary is standalone and forms part of the annual report.

Key ESG Risks & Opportunities

• Water is a primary raw material; mitigated via rainwater harvesting and groundwater recharge.
• Energy risk and renewables opportunity; solar capacity installed at Pune and Kochi.
• People/community opportunities through CSR programs for painters and local uplift.
• Cybersecurity risk due to ERP; mitigated by daily backups and disaster recovery planning.
• Governance oversight with board and ESG committee to monitor sustainability.
• Regulatory risk: INR 19.26 crore GST credit demand under appeal.
• EPR/waste recycling activities; over 4000 MT plastic recycled.

Governance & Policy Highlights

• Board-led BRSR responsibility; Chairperson-MD oversees ESG; CFO implements.
• ESG committee chaired by MD reviews sustainability initiatives.
• Anti-corruption policy in place and accessible on company site.
• Policies extended to value chain with board approval.
• Policies align with SEBI LODR and NGRBC; board-approved.
• No external assurance obtained for BRSR Core.

Social Responsibility & Workforce

• Workforce: 1,137 permanent employees; 1,352 total workers.
• Gender representation: board 8 members with 12.5% female; KMPs 50% female.
• Health/safety training coverage: 96.66% of employees; skill upgradation 100%.
• Whistleblower policy and open-door grievance mechanisms for employees/workers.
• CSR initiatives include Educare, healthcare, painter health, Seva Utsav, and skill programs.
• Wages: female share 2.44% of total wages.
• POSH committee; no POSH complaints in FY2025-26.
• Accessibility for differently abled; equal opportunity policy in place.

Environmental Performance

• Total energy 28,570 GJ; renewable share 518 GJ; solar 20 kW HQ, 330 kW Kochi.
• Scope 1: 85.83 tCO2e; Scope 2: 5,333 tCO2e; intensity 4.07 tCO2e per H crore.
• Scope 3: 121,450.68 tCO2e; intensity 0.00000913 tCO2e per turnover.
• Water withdrawal 64,730 kL; ZLD across all facilities; water reused in-process.
• Total waste 1,722 MT; 1,266 MT recycled; 380 MT reused; 33 MT landfilled.
• 4000 MT plastic waste recycled under EPR.

Stakeholder Engagement & Complaints

• Stakeholders: employees, local communities, regulators, customers, shareholders, suppliers.
• Engagement channels: email, community meetings; monthly for employees; ongoing/quarterly for others.
• Community helpline established to receive feedback and address grievances.
• Customers filed 27 complaints in FY2025-26; 0 pending unresolved.
• Shareholders filed 608 requests in FY2025-26; resolved in respective quarters.
• Whistleblower policy protects reporting; POSH committee maintains workplace safety.

Other Notable Metrics

• Sustainable sourcing: 46.6% direct MSMEs; 89.2% inputs sourced domestically.
• Related-party transactions: purchases from related parties 0%; sales to related parties 0.87%.
• Data privacy: policy exists; no data breaches.
• Trade associations: Indian Paint Association; Indian Institute of Interior Designers.
• RPT-focused governance and energy/water intensity metrics expanded; external assurance not obtained.

Dividend, governance & AGM updates

• Final dividend ₹5 per share proposed.
• Record date 04 Sep 2026.
• AGM to be conducted via VC/OAVM.
• Remote e-voting from Sep 9–11, 2026.
• Dividend payout by Oct 12, 2026.
• Dividend payout ratio 16.39%.
• Narayanankutty Venugopal reappointed as Executive Director, 2025–2030.
• Venugopal chairs Stakeholders Relationship and Risk Management Committees.
• Cost auditor remuneration ratified for 2026–27; cap ₹80,000 plus taxes.
• PAN and KYC updates advised; MCA/SEBI compliance noted.

AGM Details

• AGM on 12 Sept 2026 at 11:00 IST via VC/OAVM.
• Mode: VC/OAVM; deemed venue at registered office.
• Record date for dividend/voting: 4 Sept 2026.
• Book closure: 5–12 Sept 2026.

Resolutions to be Voted

• Adoption of standalone and consolidated financial statements for year ended 31 March 2026.
• Declaration of final dividend of Rs 5.00 per share.
• Appointment/reelection of Narayanankutty Venugopal as Executive Director for 2025–2030.
• Ratification of cost auditor remuneration for 2026-27: Rs 80,000 plus taxes.

Dividend Plan

• Final dividend of Rs 5.00 per share; payable by Oct 12, 2026 upon approval.

Director Changes

• Executive Director Venugopal to be appointed for term until 31 May 2030.
• Venugopal attended 5 of 5 board meetings; age 77.
• Remuneration last drawn: Rs 180 Lakhs plus ESOP.

Auditor Appointments

• Cost Auditor remuneration for 2026-27 ratified at Rs 80,000 plus taxes.

Voting Results

• Voting results not disclosed in filing; to be announced post-AGM.

Transaction details

• Target: Indigo Paints Limited.
• Disclosing Party: HDFC Mutual Fund schemes; not promoter group.
• Transaction Type: Acquisition of 13,51,199 shares (2.831% of total share capital) via open market.
• Pre-transaction holding: 24,13,050 shares, 5.055% voting rights.
• Post-transaction holding: 37,64,249 shares, 7.886% voting rights.
• Date of transaction: August 14, 2026.
• Capital before: Rs 47,73,26,370 comprising 4,77,32,637 equity shares.
• Capital after: Rs 47,73,26,370 comprising 4,77,32,637 equity shares.

Transaction summary

• Target Company: Indigo Paints Limited.
• Disclosing Party: Nippon India Mutual Fund (through Nippon Life India Trustee Limited A/c) — not promoter.
• Transaction Type: Sale of shares carrying voting rights.
• Pre-Transaction Holding: 40,60,251 shares, 8.5062% voting rights.
• Transaction Details: Sold 11,55,722 shares (2.4212%), open market.
• Post-Transaction Holding: 29,04,529 shares, 6.0850%.
• Date Range: September 10, 2024 to August 14, 2026.
• Share Capital Context: Pre/post/diluted Rs 47,73,26,370.
• Mode of transaction: Open Market.